Email : info@otcjournal.com
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To
OTC Journal Members:
Once again, many thanks to members
that sent in congratulatory notes from Monday's trading alerts. Both Oracle
(NASDAQ: ORCL) and Art Group (NASDAQ: ARTG) did extremely well
on Tuesday. Wednesday we gave back most of the gains at the open, but both
stocks headed back up. If sold on Tuesday you made money. Neither stock
has traded down to our recommended stop loss. We are getting a great rebound
this morning, and you can take profits if you want to. Also- many thanks
to the hundreds of readers that pointed out our error in the last edition-
from now on the Wholly Grail will be the Holy Grail.
Two of our editors are holding positions
in Art Group in their personal accounts from the $17.25 range
and looking for more prior to the FOMC meeting next Tuesday. With some
luck the NASDAQ may rebound even more and provide three or four
points of profit.
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News On Energy
Power Systems (OTC BB: EYPSF) |
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This morning prior to the market
open there was a very positive news release from Energy Power, our
current profile. We released our profile back on February 10th at $3, and
the stock traded very well for a brief period of time. The stock saw $4
in short order, but has since fallen back in sympathy to the NASDAQ
to just under $2. If you missed the original release now would be a good
time to review it as the stock seems to have no sellers at these levels
and is now moving up with little resistance on today's news. Click
Here to read the original profile.
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From
A Recent Article In Money Magazine |
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Michael Sivy of Money recently wrote:
"High
energy costs are one of the few external shocks that can overwhelm even
the best Fed policy. But the economy has far greater capacity to absorb
such a shock today than it did in the 1970s. In addition, the Bush Administration
will push hard to expand the supply of oil and gas, which could allow energy
prices to fall. For investors, it's smartest to focus on oil-service companies
like Schlumberger (NYSE: SLB), which benefit from exploration, rather than
major producers, whose profits depend on the price of oil".
Mr. Sivy's observation summarizes
the reason we like Energy Power. Small stocks in the oil services
business are also beginning to trade well along with the larger companies
like Sclumberger as business is booming. With the prices of oil
and natural gas at levels we haven't seen in years, exploration in North
America is experiencing a tremendous resurgence.
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Today's
News Release |
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Energy Power's wholly owned
subsidiary M&M Engineering landed another contract today related
to the massive Hibernia Project in Atlantic Canada. M&M Engineering
Limited has been in business since 1968, and is an industrial, mechanical
and electrical contractor. A subsidiary produces steel components for structures
and heavy industry, manufactures pressurized vessels and tanks, and provides
in-plant fabrication, welding and assembly services for the offshore oil
industry at its 40,000 square foot and 15 acre production yard in St. John’s,
Newfoundland.
In its last earnings release, Energy
Power reported its first profit since 1996. This serves as further
evidence the company is participating in the current exploration surge.
Energy Power announced this
morning that its subsidiary, M&M Engineering Limited, has been
awarded a $2.5 million dollar contract to complete the mechanical installation
of Phase III of the Newfoundland Transshipment Terminal.
Pictured here, the tank capacity
at this terminal is 2.5 million barrels of oil. According to the press
release, another storage tank is being added which will bring the capacity
to 3 million barrels of storage. The Hibernia field alone is estimated
to contain 850 million barrels of oil.
Newfoundland Transshipment Limited
has contracted US based terminal operator IMTT (International Matex Tank
Terminals) to manage and operate the transshipment terminal at Whiffen
Head. The terminal is located on the isthmus connecting the Avalon Peninsula
to the remainder of the island of Newfoundland, on the northeast edge of
Placentia Bay.
The Whiffen Head Site presently serves
as a transshipment facility for crude oil from the Hibernia field.
The Terra Nova field is expected to start production in 2001 and
crude from this field will also be transshipped through the Whiffen Head
Terminal. Oil is shipped from the Grand Banks to the terminal on shuttle
tankers and taken from the terminal to market on second-leg tankers. The
marine facilities include an approach causeway, tug basin, trestle, and
two jetties, with berthing and marine topside facilities (crude transfer
and control system). Onshore facilities include a tank farm, tank heating
system, interconnecting flowlines, supporting facilities, storm water handling
system and fire protection system. The tank farm presently consists of
five tanks, with a working capacity of 500,000 barrels each. Construction
of a sixth tank will start in 2001.
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Conclusion |
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In our original profile we stated
a good target price for the stock is $5.60 based on 2.8 times book
value, the industry
average for the group. The company is in the process of evolving its business
model, patterning itself after vertically integrated Enron (NYSE: ENE).
With M&M prospering, the company is continuing to develop its
India Power Plants, and beginning to develop properties with potentially
profitable oil and gas reserves. The stock is trading up nicely on today's
news. Stay tuned for further developments.
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Announcement |
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Our next profile on the XML software
company will not be released this week. It could come out early next week.
We'll update everyone in the weekend edition.
Here is the complete text of today's
news release for your review:
Thursday March 15, 9:00 am Eastern
Time
Press Release
SOURCE: Energy Power Systems Limited
via BCE Emergis e-News Services
EPS Subsidiary Awarded $2.5 Million
Newfoundland Transshipment Terminal Contract
Toronto, Ontario
Energy Power Systems Limited (EPS
or the ``Company'') (OTC BB: EYPSF - news; CDNX: YPX) (www.epsx.com) is
pleased to announce that its wholly-owned subsidiary M&M Engineering
Limited (``M&M'') of Newfoundland has been awarded a $2.5 million dollar
contract from the Newfoundland Transshipment Terminal to complete the mechanical
installation of Phase III of the Newfoundland Transshipment Terminal.
The Newfoundland Transshipment Terminal,
located in Whiffen Head, Newfoundland presently serves as a transshipment
terminal facility for crude oil from the Hibernia offshore oil field on
the Grand Banks of Newfoundland. The Terra Nova offshore oil field also
on the Grand banks of Newfoundland is expected to start production in 2001
and crude from this field will also be transshipped through this terminal.
Oil is shipped from the Grand Banks to the terminal on shuttle tankers
and taken from the terminal to market on second-leg tankers. There are
presently three dedicated shuttle tankers completing runs between the Grand
Banks and the Terminal; the Kometik, Mattea and Vinland. The marine facilities
include an approach causeway, tug basin, trestle, and two jetties, with
berthing and marine topside facilities (crude transfer and control system).
Onshore facilities include a tank farm, tank heating system, interconnecting
flowlines, supporting facilities, storm water handling system and fire
protection system. The tank farm presently consists of five tanks, with
a working capacity of 500,000 barrels each. After the completion of Phase
III, the Newfoundland Transshipment Terminal will have six tanks with a
working capacity of 3 million barrels. Hibernia is estimated to contain
approximately 850 million barrels of oil and Terra Nova approximately 400
million barrels of oil.
John Brake, President of M&M
stated 'The award of this contract is further evidence of the confidence
the offshore industry has in the core competencies of M&M and the quality
of work performed by M&M and bodes well for M&M's participation
in future contracts in Eastern Canada's growing off-shore industry. M&M
successfully contributed to Phase I and Phase II of the Newfoundland Transshipment
Terminal and anticipates commencing its mechanical installation of Phase
III in June 2001.``
EPS issued and outstanding common
shares: 5,163,419
For further information contact:
Sandra J. Hall, V.P. Corporate Affairs
Energy Power Systems Limited (416) 861-1484
Certain of the statements contained
in this news release are forward-looking statements. While these statements
reflect the Corporation's current beliefs, they are subject to uncertainties
and risks that could cause actual results to differ materially. These factors
include, but are not limited to, the demand for the Corporation's products
and services, economic and competitive conditions, access to borrowed or
equity capital on favourable terms, and other risks detailed in the Corporation's
Form 20-F and Annual Report.
The Canadian Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy
of this release.
SOURCE: Energy Power Systems Limited
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